Siemens revenue stable despite fall in orders

16th May 2024 07:18

(Sharecast News) - Siemens reported relatively stable revenue in its second quarter on Thursday, despite a 12% decline in comparable orders, reflecting a high volume of large orders in the mobility segment.

The industrial technology conglomerate said its nominal revenue dipped 1% to €19.2bn, with orders dropping 13% to €20.5bn.

Despite that, the company maintained a book-to-bill ratio of 1.07 and increasing its order backlog to €114bn.

"We continued to benefit from strong demand for digitalisation and sustainability during our second quarter, particularly in the data centre and semiconductor industries," said president and chief executive officer Roland Busch.

"Siemens proved its resilience with strong revenue performance in smart infrastructure, mobility and industrial software - this nearly offset currently muted demand in digital industries' automation business.

"With the right strategy, the right technologies and the right team, we are well positioned for profitable growth."

Profit in the industrial business came in at €2.5bn, representing a 14% profit margin, consistent with the same period last year.

However, net income for the three mont period was €2.2bn, down from €3.6bn a year earlier, which included a significant €1.6bn tax-free gain from the reversal of an impairment on Siemens' stake in Siemens Energy.

Earnings per share for the quarter came in at 257 euro cents, with earnings per share before purchase price allocation accounting reported at 273 cents.

Chief financial officer Ralf Thomas highlighted the company's strategic advancements, noting that with Innomotics, the company had taken "another significant step" in optimising its portfolio.

"Based on our solid performance in the first half of the fiscal year, a very strong balance sheet recognised by our latest rating upgrade, and our record order backlog, we look to the future with confidence as a leading technology company," Thomas said.

"We confirm our outlook for fiscal 2024."

At 1010 CEST (0910 BST), shares in Siemens AG were down 2.74% at €182.56.

Reporting by Josh White for Sharecast.com.